■ PB of 1.67x still far from previous lows. Given the twin fears of a trade war and EM contagion, we look at how far valuations and specifically priceto-book is from previous lows. While our note on net foreign selling highlights foreign investor capitulation (and only the fifth such episode since 1997), Figure 1 highlights that the current PB of 1.67x is still far from the previous lows. The two most recent lows were 1.28x in August 2015 (Yuan devaluation) and 1.47x in January 2014 (post Fed taper of 2013). The current ROE of 11.2% is similar to the ROE at the January 2014 low but higher than the ROE of 10% seen at the August 2015 lows. Read More